Part B - Internal Control Testing MemoDate:May 15, 2017To:Wheelz Co.Prepared by:Fahmida MustafaReference:A-1Subject:Observations on test of control performed by auditor.Based on the review of documents provided, my observations are as follows:i)It is not acceptable to directly use the same transactions and sample size for the first two tests of controls, while the estimated population deviation rate is different for both controls. I think that sample size of 58 transactions which are randomly chosen would be appropriate for the first test of controls based on the moderate importanceand the tolerance and 1% estimated deviation allocated. For the second test of controls with the difference in the estimated deviation, the sampile size for this test increases to 77 (according to the Attribute table: for 2% of estimated population deviation rate and 8% tolerable deviation rate for control deemed moderately important).

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